Email us: info@loanfasttrack.com
Email us: info@loanfasttrack.com
Get a loan against property @ lowest interest rates starting from 7.50%* p.a. for a maximum repayment tenure up-to 20 years at lowest processing fees starting from 0.50% up-to 1% of the loan amount and 0% up-to 2% foreclosure charges with Loanfasttrack.
The Loan Against Property (LAP) is a loan offered by the lender- Bank/NBFC/HFC against the security (i.e., mortgage) of a freehold property. The property pledged can either be residential or commercial. Since there is a security (or mortgage) involved, it is considered as a secured loan by the lender and hence is also called a Mortgage Loan in India.
Also referred to as property loan India, LAP can be used for personal as well as business purposes, such as home renovation, house repairs, investment in property, children’s education & marriage, business expansion, closing unsecured loans, etc. Since the LAP amount can be utilized for many personal reasons, lenders keep their margins high in mortgage lending interest rates and therefore the rates are high in mortgage loans because mortgages involve more risk.
Bank |
Loan Against Property Interest Rate In India |
LAP Processing Fee |
Maximum Tenure For Loan |
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7.75% p.a. - 9.75% p.a. |
1% of the loan amount + applicable GST |
Up-to 20 years |
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Limited period offer with ICICI Bank |
0.50% Processing Fee waiver for cases above Rs.50 Lakhs |
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Special ROI for a commercial loan with ICICI Bank @ 8% p.a. |
Discounts are available on processing fees. |
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7.50% p.a. - 11.10% p.a. |
0.50% of the loan amount + applicable GST |
Up-to 15 years |
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Limited period offer with HDFC |
0.25% Processing |
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9.95% p.a. - 12% p.a. |
0.50% of the loan amount + applicable GST |
Up-to 10 years |
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9.25% p.a. onwards |
1% of the loan amount + applicable GST |
Up-to 15 years |
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10.50% p.a. 11.25% p.a. |
Rs.10,000/- or 1% of the loan amount (whichever is higher) + applicable GST |
Up-to 20 years |
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8.80% p.a. - 9.65% p.a. |
1% on the loan amount + applicable GST |
Up-to 15 years |
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Bank Of Baroda Loan Against Property |
8.45% p.a. - 13.20% p.a. |
1% of the loan amount + applicable GST |
Up-to 10 years |
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Bank Of India Loan Against Property |
8.85% p.a. - 9.35% p.a. |
1% of the loan amount + applicable GST |
Up-to 15 years |
Note: Interest rates of home loans of all banks and processing fees are subject to change without prior notice.
Mortgage Processing Fees |
Up-to 1% on the loan amount. |
Legal & Technical Cost |
Rs.5900/- to Rs.10,000/- |
Stamp Duty Cost |
0.30% on the loan amount. |
CERSAI Cost |
Rs.100/-. |
CIBIL Cost |
Up-to Rs.100/-. |
Title Search Cost |
Rs.3,500/- - Rs.7000/- |
Foreclosure Charges on LAP |
2% - 4% on the outstanding loan amount. |
GST |
18% applicable on all loan charges. |
The loan to value ratio tells how much of a property is being financed. It is the major factor in determining your LAP eligibility. The LTV ratio in LAP is different for residential, commercial, and industrial properties.
Residential Property |
Commercial Property |
Industrial Property |
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Currently, HDFC tops the rank for the best banks providing the lowest interest rates for mortgage loan in India followed by ICICI Bank. HDFC Loan against property interest rates start from 7.50%, you may also apply for mortgage loan online from the comfort of your home.
Types of mortgage loans in India can broadly be categorized into 6 types. The following are these 6 different types of mortgages in India.
Read more
Read more
Each lender has different eligibility criteria for loan against property. The amount of mortgage loan they provide depends on these different criteria such as your age, income, employment details, CIBIL scores, LTV, FOIR, total liabilities & title clearance of the property.
Age |
Minimum 21 years & Maximum 70 years |
Resident Type |
Indian resident, NRI & PIO |
Employment Profile |
Salaried, salaried NRI, self-employed & self-employed professionals. |
Type Of Property Collateral |
Residential, commercial & industrial. |
CIBILScore for Mortgage Loan |
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Minimum Income |
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Loan Against Property Minimum Amount |
Rs. 10 Lakhs. |
Incomes Considered for Eligibility |
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Incomes Not Considered for Eligibility |
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How is loan against property eligibility calculated?
((Net income per month X 60% FOIR) – Obligations) ÷ Per lakh EMI For Self-Employed |
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Properties Considered as Collateral |
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Properties Cannot Be Considered As Collateral |
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With a loan against property EMI calculator, calculate how much EMI for loan against property you can comfortably pay. The three main factors which determine your mortgage EMIs are loan amount, loan tenure, and the rate of interest. Use these details on the LAP calculator and know your EMI along with the total interest payable to the lender.
Given below are the benefits of loan against property:
Of all the mortgage companies in India, given below are the top 3 best mortgage loan schemes of the banks.
There are no tax benefits on loan against property. However, a loan against property tax rebate can be claimed on the interest paid provided the end-use of the LAP loan is justified and is properly documented. For instance, the interest can be claimed as business expenses under section 37(1) if the LAP loan is used for business purposes OR can be claimed under section 24(b) if the LAP amount is used for purchasing a house/for home renovation/home repair. However, if the LAP amount is used for personal needs such as marriage expenses or children’s education, travel holidays, etc. no tax benefits on the interest paid will be allowed. Also, the loan against property income tax benefits is not allowed on the amount of principal repayment of the loan.
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Salaried |
Self-Employed |
KYC |
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Income Documents |
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Other Documents |
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Property Documents |
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Additional Documents Required for Loan Against Property Transfer To Another Bank |
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Click to get a detailed list of documents till disbursement for loan against property in India for NRI, Salaried, Self-employed - Proprietorship Firm, Partnership Firm, & Private Ltd. Company.
The following is the procedure for loan against property:
You can apply for a mortgage either online or offline with a lender. For an online application, fill the form with basic details such as name, address, contact details, employment details, income details & co-applicant’s details. For offline, make physical applications to the lender.
In an online application, upload your mortgage loan documents online. In offline, a bank representative in person will collect the documents & the application form.
The documents are verified & processed for CIBIL checks, FI visits, legal & technical, etc.
Property legal is conducted to ascertain the property has a clear and marketable title and the technical is conducted to ascertain the market value of the property so that the lenders do not over-lend the cost of the property.
A personal discussion with the credit manager is arranged to evaluate your requirement for obtaining a mortgage loan. After successful discussion and clear legal & technical reports, your loan will be sanctioned.
On loan sanctioned you are required to pay the LAP processing fee on the approved loan amount.
Once you pay the complete processing fee amount, an official copy of the sanction letter will be issued. Know how to read the sanction letter of the bank.
Lastly, sign the lender loan against property agreement for disbursement and submit.
Read more for a detailed process.
Loan Against Property |
Home Loan |
Taken against the already owned property. |
Taken to purchase a new residential property. |
Property can be either commercial or residential. |
Property is only residential. |
Mortgage rates in India are 1.5% - 2% higher than home loan interest rates. |
Home loan rates are 1.5% - 2% lower than LAP rates. |
Max. funding of up-to 65% of the property value. |
Max. funding of up-to 90% on the property value. |
LAP maximum tenure of 20 years. |
Max. tenure of 30 years. |
Max. processing fees of up-to 1% on the loan amount. |
Max. processing fees of up-to 0.30% on the loan amount. |
Ans: 750 & above must be your minimum CIBIL score for loan against property.
Read if you want to know how to apply for a mortgage loan with low CIBIL score.
Ans: A loan given in the form of an overdraft against the pledge of your property is a LAP overdraft facility. The LAP rates India for overdraft against property is 1%-2% higher than the standard overdraft facility against property.
Ans: You can visit the website of the lender and apply for the loan, also you can visit the lender branch to apply in person. Alternatively, you can simply visit www.loanfasttrack.com and get the personalized services from the top mortgage lenders in India at no extra cost.
Ans: The EMI for loan against property generally depends on your age, loan tenure, loan amount, and LAP rates. Given the maximum tenure offered under loan against property of 15 years and lowest LAP ROI of 8.35%, your LAP EMI for 25 Lakhs will be Rs.24,399/-.
Ans: The loan amount on the property depends on the type of the property and its market value.
Ans: Yes, you are eligible for a mortgage loan. A loan against property for pensioners is available under the head of a reverse mortgage, subject to the end-use of the loan. For complete details on reverse mortgages & reverse mortgage eligibility kindly refer to our blog on reverse mortgage loans for the elderly.
Ans: No. LAP loan is not provided for a new business or for starting a new business. You need to have a minimum business vintage of 5 years to apply for a LAP loan.
Click to know the various business conditions of the lenders for applying for a mortgage loan for self-employed applicants.
Ans: Banks such as ICICI Bank, HDFC, Canara Bank,SBI , Axis Bank are some of the prominent mortgage lenders. Kindly refer above for other LAP lending Banks/NBFCs/HFCs & their LAP interest rates.
Ans: No. A loan against property can never get converted to a home loan.
Ans: Yes, you can avail of a loan against gram panchayat property. There are not many lenders NBFCs/HFCs which provide loan against property in gram panchayat areas.
Ans: You can anytime transfer loan against property to another lender provided you meet the LAP transfer prerequisite. Also, you will have to pay a foreclosure charge to the lender if you apply for a mortgage balance transfer.
Read more
Ans: Loan against property minimum interest rates starts from 7.50% p.a. Which is provided by HDFC. HDFC LAP interest rate can be floating as well as fixed. HDFC LAP rates range from 7.50% p.a. - 11.10% p.a.
Ans: Yes, you can apply for a joint loan against property with an eligible co-applicant to enhance your mortgage eligibility. You can apply for a joint mortgage with parents, spouse & children. You can also apply for a joint mortgage with siblings.
Read more for joint loan benefits.
Ans: Yes, you can apply for a mortgage loan with multiple lenders. Every time you apply the lender will run a CIBIL check which may affect your CIBIL score. Hence it is advisable to compare and evaluate the best banks for mortgage loans in India before making multiple mortgage applications. However, you can apply for multiple mortgage loans with multiple lenders subject to your eligibility.
Ans: Yes, you can apply for a mortgage loan online with ICICI Bank. ICICI Bank LAP interest rate starts from 8.35% p.a. onwards.
Click to know how to apply for a mortgage loan online
Ans: You cannot apply for a loan against property without income proof. For salaried loan applicants, it is mandatory to have form 16 and salary slips to apply for a LAP loan with banks. However, some NBFCs may consider your mortgage application provided you get the salary certificate from the employer but may charge you with high mortgage rates and processing fees. Click to get the salaried list of documents required for applying for a mortgage loan.
Ans: You can anytime apply for a pre-sanction loan. The pre-sanction helps you to know your exact loan eligibility in advance and accordingly plan for your budget. It also saves your time as a major part of loan sanction has already been done. Therefore, when you have a requirement of funds soon you should apply for a LAP loan in advance.
Ans: You can either visit the lender’s website and apply for mortgage loan presanction or you can visit the lender branch to apply for mortgage pre-approval. Alternatively, you may simply visit www.loanfasttrack.com and get the personalized free loan services in Mumbai from the top mortgage lenders in India at no extra cost.
Ans: The interest rates for fixed-rate mortgages differ from lender to lender and the tenure of the loan. The fixed rates are generally higher by 1%-2% than the standard floating rates of the lender. Please check with your lender for the exact terms and rates for the fixed interest rate mortgage loan.
Ans: You can convert your fixed interest rate ICICI Bank mortgage loan to a floating interest rate ICICI mortgage loan to enjoy the lower interest rates. You will have to pay a charge for search conversion. Please check with ICICI for the terms and conditions of your fixed-rate loan.
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Assured Lowest Mortgage Interest Rates In India. |
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Compare LAP Interest Rates Of The Top Banks. |
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No Hidden Cost. |
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Nil Part Payment Charges & Low Foreclosure Charges. |
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Money-Saving Unique Offers. |
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Lifetime Free Financial Advice. |
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